Page 165 - APM Integrated Workbook STUDENT S18-J19
P. 165
Non-financial performance indicators
2.3 Evaluation of the balanced scorecard as a performance measurement tool
Advantages Disadvantages
Includes financial measures – Difficult to record and process
these reveal the results of non-financial (often qualitative)
actions taken. data.
Includes non-financial Information overload.
measures – these drive future
financial performance. Lack of commitment by senior
managers or poor
External as well as internal communication to other
information. managers/employees threatens
its success.
Multiple measures make it
harder to manipulate Conflict between measures.
performance.
Lack of some key perspectives,
Can change measures over e.g. CSR.
time to reflect changing
priorities. Time and cost involved.
Is aligned with overall strategic Focus on strategic level
objectives and vision so should (although can implement at
achieve long-term success. lower levels).
155
